The head office of SNC Lavalin are seen Thursday, February 19, 2015 in Montreal. (File photo by THE CANADIAN PRESS)

Trudeau election win boosts SNC-Lavalin shares amid hopes around criminal case

Liberal win left open the possibility of a plea deal on fraud and corruption charges

SNC-Lavalin Group Inc. shares shot up Tuesday after the Liberal election win left open the possibility of a plea deal on fraud and corruption charges facing the engineering firm.

The beleaguered company saw shares climb 13 per cent or $2.24 to $19.92 in early-afternoon trading, buoyed by investor hopes that the Liberal refusal to close the door on a deferred prosecution agreement will play out to SNC’s advantage ahead of a criminal trial.

Prof. Karl Moore of McGill University’s Desautels Faculty of Management says the return of a Liberal government to Ottawa, albeit a minority, is “good” for SNC-Lavalin.

Analyst Chris Murray of Altacorp Capital says a resurgent Bloc Quebecois, which more than tripled its seat count to 32, could fan hopes the new Parliament might work to help the Montreal-based multinational.

Attorney General David Lametti has refused to shut down the possibility of a remediation agreement with SNC. The company has seen its market value fall by roughly 60 per cent since January amid a political scandal in Ottawa, and faces an upcoming trial on charges of fraud under the Criminal Code and bribery under anti-corruption legislation.

SNC-Lavalin declined to discuss the government’s intentions or comment on the ongoing court case.

The Canadian Press

READ MORE: SNC-Lavalin slashes profit forecast amid shift away from oil and construction

Like us on Facebook and follow us on Twitter

Just Posted

Local pilot takes part in Salmon Arm’s first Remembrance Day flyover

Hamilton McClymont and other pilots pay aerial tribute at several North Okanagan ceremonies

Students, staff glad to be back at Sicamous elementary school

Operations resume at Parkview on Nov. 13 after a seven-week closure due to a musty smell

Concert hall and event centre proposed for Salmon Arm’s downtown

Property owner plans to provide a performance venue with future recording studio

New signage at hazardous Salmon Arm intersection result of ‘nudging’

Mayor pleased council’s requests for improvements to Highway 97B and 10th Avenue heard

Salmon Arm Seniors Resource Centre operations hindered by lack of space

Seniors support programs limited by lack of room at centre’s current location

VIDEO: Canadian allergists’ group wants Benadryl behind the counter due to side effects

Some doctors say the medication is over-used because of its easy availability

Community uses loophole to paint 16 rainbow crosswalks after B.C. council says no

So far 11 rainbows are painted and five planned, all since council denied the first proposal in September

Workers’ camp at LNG facility in Kitimat takes shape

Extensive worker camp now being assembled

Former B.C. youth pastor guilty on one of five sexual assault allegations

Judge cites reasonable doubt in finding Cloverdale couple not guilty of majority of charges

238 and counting: Vancouver gelato shop sets Guinness World record for most flavours

Vince Misceo has come up with 588 different flavours over the decades

Killer who fled to Taiwan day after shooting B.C. man over $80 sentenced 13 years later

The sentence comes 13 years after Shaoxin Zhang, 19, was killed in a Burnaby parking lot

Four hunters found safe after getting stuck near Big White

Two adults and two children became stranded after their truck got stuck in washout

Citizens give hoot about injured North Okanagan owl

Bird with damaged or broken wing found outside Vernon Performing Arts Centre

B.C. forest industry trade mission finding new markets in China

Diplomatic tensions eased, minister Doug Donaldson says

Most Read